It's absolutely true that if us-east-1 in AWS has a bad day, a significant fraction of the American digital economy will shut down. For some companies, the same is true of Azure and Google's various comparable offerings.
I read your post as skeptical. Why would you be skeptical? If you care about keeping your product up, you absolutely should have a fallback for cloudflare if you're a customer of theirs. Now, you might not care (and actually, for most folks I submit you need not care), but the folks making sure Ambulances get timely push notifications and realtime driving instructions probably care quite a bit.
A steel chain made of links has as many SPOF as links.
The Physalia paper is a wonderful read that explains both the justification and high-level approach to implementing said isolation [1].
Another great example is shuffle sharding [2], notably used in Route53.
The end goal of this is that aws outages would be isolated to subsets of aws customers where possible. So instead of half the internet failing it's only 10% (obviously the exact numbers depend heavily on implementation).
[1] https://assets.amazon.science/c4/11/de2606884b63bf4d95190a3c... [2] https://aws.amazon.com/builders-library/workload-isolation-u...